Crypto-currency rewards network

ABSTRACT

A network for maintaining and disbursing rewards on behalf of a plurality of anonymous crypto-currency holders is provided. The network may be in communication with a crypto-currency platform. The plurality of crypto-currency account holders may also be in communication with the crypto-currency platform. The network may include a receiver. The receiver may be configured to receive purchase information from the crypto-currency platform. The purchase information may be related to at least one purchase performed using crypto-currency at a POS device. The purchase may be performed by at least one of the plurality of anonymous crypto-currency holders. The purchase information may include a purchase price. The network may include a transmitter for transmitting reward information to the POS device. The transmitting reward information may include transmitting at least one an anonymous bearer coupon, a reduction in the purchase price or a crypto-currency refund or reward.

CROSS-REFERENCE TO RELATED APPLICATION

This application is a non-provisional of U.S. Provisional PatentApplication No. 62/586,409 filed Nov. 15, 2017 entitled “CUSTOM REWARDSPROTOCOL AND SYSTEM ARCHITECTURE” which is hereby incorporated byreference herein in its entirety.

FIELD OF TECHNOLOGY

Aspects of the disclosure relate to providing apparatus and methods fora custom rewards architecture. Specifically, aspects of the inventionrelate to providing apparatus and methods for a custom rewardsarchitecture within a pre-existing product with a custom protocol thatenables customers, merchants, and issuers to utilize the architecture inreal-time.

BACKGROUND

In an electronic payment scenario, a customer (the “customer”) maypurchase from a merchant or service provider (“the merchant”) goods orservices (“the product”) using credit or by debiting an asset account.The credit may be extended to the customer by an issuing bank (the“issuer”). The asset account may reside at the issuing bank or be heldby another entity. The merchant presents the transaction to an acquiringbank (the “acquirer”). The acquirer pays the merchant for (and thus“acquires”) the product. A transaction processing network incommunication with the issuer and the acquirer settles the transactionbetween the issuer and the acquirer. The transaction processing networkmay set transaction processing network fees and collect those fees fromthe issuer and the acquirer in connection with a settlement process.

Conventionally, the issuer was responsible for marketing his card, andtherefore, provided rebates points, miles, etc. to cardholders. In theconventional marketplace, the merchant was charged a specificinterchange rate. Issuers use the overall economics of a transaction andproduct to provide a reward to the customer using the rebates issuerpoints or miles system.

There are numerous challenges associated with the above-describedconventional architecture. Included in the challenges is that the pointsand/or miles only market the issuer's card, as opposed to the merchant'sproduct. Although at times a merchant partners with an issuer to producea branded-card product, this multi-party branding becomes cumbersomeover time and difficult for a customer to track. Additionally, even inthe event of a merchant-branded issuer-based card, there is nomotivation for a customer to maintain a distinct communication with themerchant. Therefore, the merchant is unable to provide the customer withleverage using the “would-have-gotten” points at the time of the sale.

Therefore, a custom rewards architecture with a custom protocol thatenables customers, merchants, and issuers to utilize the architecture inreal-time is desirable.

It would be further desirable to enable the customer, using the customrewards architecture, to be capable of maintaining a distinctrelationship with the merchant. The issuer preferably benefits from thedirect interaction between the merchant and the issuer, therebyincreasing sales while using a specific issuer-based card product. Itmay be further desirable for the merchant to be able to use the pointsor miles to directly encourage the customer to purchase goods and/orlower prices. It may also be desirable for the customer to receivereal-time, accurate, targeted rewards at the point of sale, as opposedto, for example, four weeks later on his/her credit card statement.

SUMMARY OF THE DISCLOSURE

A network for maintaining and disbursing rewards on behalf of anonymouscrypto-currency holders is provided. The network may communicate with acrypto-currency platform. The plurality of anonymous crypto-currencyholders may also communicate with the crypto-currency platform.

The network may include a receiver. The receiver may be for receivingpurchase information from the crypto-currency platform. The purchaseinformation may be related to a purchase performed. The purchase may beperformed using crypto-currency at a POS device. The purchase may beperformed by one of the anonymous crypto-currency holders. The purchasemay be performed using a crypto-currency card.

The network may include a transmitter. The transmitter may be fortransmitting reward information to the POS device. The transmitter maybe for transmitting reward information to the crypto-currency platform.The reward information may insure to the benefit of the one of theanonymous crypto-currency holders. The reward information may insure tothe benefit of a crypto-currency account associated with one of theanonymous crypto-currency holders.

The reward information may include one or more of: an anonymous bearercoupon, a reduction in a purchase price of the purchase, and acrypto-currency refund and/or credit. At the POS device, the anonymouscrypto-currency holder associated with the at least one purchase mayselect between the anonymous bearer coupon, the reduction in thepurchase price or the crypto-currency refund, reward and/or credit.

The order in which the anonymous bearer coupon, the reduction in thepurchase price or the crypto-currency refund is presented to the atleast one of the plurality of anonymous crypto-currency holders may bebased, in part or in whole, on a machine-learning algorithm. Themachine-learning algorithm may determine the selection of a majority ofcrypt-currency holders within a specific geographical area. The specificgeographical area may be defined based on a predetermined distancesurrounding the POS device.

The crypto-currency refund may be disbursed, in response to thepurchase, to a merchant associated with the POS device. The disbursementmay use an acquiring network. The acquiring network may be associatedwith the merchant and the crypto-currency network. The acquiring networkmay instruct the network to transmit the reward information. Theacquiring network may not retrieve an interchange fee from the merchantin order to compensate for the transmission of the reward information.In other embodiments, the acquiring network may retrieve a lower thanconventional interchange fee in order to compensate for the transmissionof the reward information.

BRIEF DESCRIPTION OF THE DRAWINGS

The objects and advantages of the invention will be apparent uponconsideration of the following detailed description, taken inconjunction with the accompanying drawings, in which like referencecharacters refer to like parts throughout, and in which:

FIG. 1A shows an illustrative prior art system architecture;

FIG. 1B shows views of an illustrative device presenting illustrativescreenshots in accordance with principles of the invention;

FIG. 1C shows views of the illustrative device, shown in FIG. 1B,presenting additional illustrative screenshots in accordance withprinciples of the invention;

FIG. 2 shows an illustrative chart in accordance with principles of theinvention;

FIG. 3 shows an illustrative flow diagram in accordance with principlesof the invention;

FIG. 4 shows an illustrative outline in accordance with principles ofthe invention;

FIG. 5 shows an illustrative system in accordance with principles of theinvention; and

FIG. 6 shows another illustrative system in accordance with principlesof the invention.

DETAILED DESCRIPTION

Rewards programs may deepen current customer relationships and attractnew customers. Rewards programs may offer customers incentives to usetheir payment instruments to purchase goods or services from merchants.Illustrative rewards include perks such as upgrades, cash-back, airlines miles or “points.” Points may be utilized to obtain goods orservices from qualifying merchants. Customers typically earn points bymaking qualifying purchases using a payment instrument provided by theissuer.

Typically, rewards programs are funded by the issuer and do not promotemerchant specific spend, brand or message.

Merchants pay fees to the acquirer, including terminal rental fees,network fees and other fees, for processing payment instrument payments.Such fees may include fees imposed by a network. Fees paid by themerchants may be leveraged to compensate an issuer for accepting acredit risk associated with payment instruments and/or compensate anissuer for other costs associated with administering a card program. Theissuer may allocate, directly or indirectly, a portion of the fees tofund rewards or other programs to promote payment instrument usage.

It would be desirable to design a model and associated electronicpayment processing architecture that provides customers with reward-typeincentives to use payment instruments, but allows issuer to rebate anyfees paid by the merchants and allow merchants to control and direct themarketing and loyalty of their brand. Accordingly, it would be desirableto provide apparatus and methods for custom rewards protocols and systemarchitecture.

In another embodiment, a merchant point-of-sale (“POS”) systemarchitecture is provided. The POS system architecture may include a POSterminal. The POS terminal may include a receiver, a virtual display anda transmitter. The receiver may be configured to receive a paymentauthorization request. In response to the receipt of the paymentauthorization request, the virtual display may be configured to displayselectable reward options. The selectable reward options may bedisplayed prior to processing the payment authorization request. Theselectable options may include a first and second option. The firstoption may be to apply a merchant-funded (“MF”) rewards program networkto the payment authorization request. The second option may be tocontinue to apply the default issuer funded (“IF”) rewards programnetwork to the payment authorization request. The receiver may beconfigured to receive a selected option from the virtual display. Theselected option may be either the first or second option.

At the POS terminal, the transmitter may be configured to transmit thepayment authorization request and the selected option to a transactionprocessing network. The transaction processing network may be associatedwith an issuer of the payment instrument. The transaction processingnetwork may be configured to receive the payment authorization request.The processor may be configured to process the payment authorizationrequest. The processor may be configured to determine the selectedoption associated with the request. When the first option is determinedto be selected the processor may be configured to terminate a firstcommunication exchange. The first communication exchange may be betweenthe POS terminal and the IF rewards program network. The firstcommunication exchange may be the communication exchange thatpre-existed the payment authorization request. When the firstcommunication exchange is terminated, the processor may be furtherconfigured to activate a second communication exchange. The secondcommunication exchange may be between the POS terminal and the MFrewards program network. The processor is further configured to processthe payment authorization request. The processor may also be configuredto apply rewards associated with the MF rewards program network for thepayment authorization request.

When the second option is determined to be selected, the processor maybe configured to terminate a second communication exchange. The secondcommunication exchange may be between the POS terminal and the MFrewards program network. The termination may take place prior toprocessing the payment authorization request. In response to thetermination, the system may be further configured to restart a firstcommunication exchange. The first communication exchange, which may bethe default communication exchange, may be between the POS terminal andthe IF rewards program network. The processor may be further configuredto apply rewards associated with the IF rewards program network for thepayment authorization request.

In another embodiment, a method of electronically processing paymentsfrom a credit card or card that debits an asset account is provided. Thecard that debits an asset account may include a prepaid card, an ACH(automated clearing house) or other suitable card or payment device. Themethod may include receiving a request from a customer. The request maybe a request to opt-in to a merchant-funded rewards (“MFR”) programnetwork. Opting into the MFR program network may initiate a trigger toswitch a communication exchange between the payment instrument and anissuer-based rewards network to a communication exchange between thepayment instrument and a merchant-based rewards network. In response toreceiving the request the method may further include linking a paymentinstrument of the customer to the MFR program network. At apoint-of-sale (“POS”) terminal, the method may include receiving anauthorization request from the POS terminal to process a transactioninitiated using the payment instrument.

In response to receiving the authorization request from the POS themethod may also include determining that the payment instrument islinked to the MFR program network. The method may include determiningthe linkage within a time-sensitive window. The window may start when apoint-of-sale (“POS”) terminal of the merchant receives information fromthe payment instrument. The window may end when the POS terminalreceives a response to the authorization request from the issuer. Themethod may further include determining eligibility for the rewardprovided by the MFR program network within the time sensitive window.The eligibility for the reward may be based on MFR criteria.

In response to the determination of the linkage between the paymentinstrument and the MFR program network the method may includeterminating a first communication exchange. The first communicationexchange may be between the payment instrument and an issuer fundedrewards (“IFR”) program network. The first communication exchange may bea pre-existing communication exchange. The termination may apply for theauthorization request.

In response to the termination of the first communication exchange, themethod may further include activating a second communication exchange.The second communication exchange may be between the payment instrumentand the MFR program network. The activating of the second communicationexchange may include adjusting a fee associated with processing thetransaction. The activating of the second communication exchange mayfurther include providing a reward associated with the MFR programnetwork to the customer. The reward provided to the customer may beassociated with a first value. The cost of the reward may be associatedwith a second value. The first value may be higher than the secondvalue. The reward may be an incentive from the merchant to enhance thecustomers shopping experience. The reward may include an upgrade. Thereward may include a free item. The reward may include an enhancedservice. The reward may include a preferred service time. The reward maybe any suitable reward-type not listed herewith.

The method may also include transmitting notifications to a mobiledevice of the customer. The notifications may include details of theavailable rewards for the transaction. The notifications may bedisplayed on the mobile device via an app running on the mobile device.The app may be provided by an issuer of the payment instrument. Theremay be a file of criteria relating to eligibility for the reward. Themethod may include receiving from the POS terminal the criteria. Thecriteria may be received from the issuer of the payment instrument. Themethod may further include processing the transaction based on theadjusted fee.

A merchant-funded rewards program may include a custom rewards program.A merchant may identify one or more rewards it wishes to make availableto its customers. For example, an eatery may offer a free drink after acustomer has spent a requisite amount of money at the eatery or hasdined a threshold number of times at the eatery. The merchant maystrategically identify a reward that provides a larger perceived valuethan an actual cost or price of the reward.

Such rewards may be non-monetary such as upgrades, free items, enhancedservice and/or preferred service times. Rewards may include monetaryrewards such as cash-back. Rewards may be provided instantly at a POS,applied as an instant statement credit or accrued and redeemed atspecified or selected times intervals.

Whatever the reward, it is funded by the merchant. In some embodiments,the reward may be jointly funded by the merchant and the issuer. In someembodiments, the merchant may partner with any suitable party to offerand fund a reward.

In some embodiments, the merchant may provide information aboutavailable rewards to the issuer. The issuer may promote the reward tocustomers (e.g., payment instrument holders). For example, the issuermay display the reward to customers from within an app or online bankingportal provided to customers by the issuer.

The merchant may promote the available reward. The merchant may promotethe reward in its store locations (online or brick and mortar) using anysuitable media or medium. The merchant may display the reward tocustomers from within an app provided to customers by the merchant.

An app running on a mobile device, such as a smart phone, may pushnotifications to customers regarding available merchant-funded rewards.When the app is provided by a relatively high profile issuer (e.g., anissuer with many more customers than a merchant), the less visiblemerchants may be provided access to a top tier mobile app and largerpool of customers than would have typically be available to themerchant.

The merchant may leverage availability of the reward to drive customertraffic to the merchant's locations and products/services. The merchantmay leverage the reward to drive customer traffic to slower grossinglocations. Merchant funding the reward may, directly or indirectly,promote a payment instrument of the issuer and associated spending onmerchant products. The issuer may leverage available rewards to drivecustomers toward specific payment instruments offered by the issuer andassociated with the rewards program.

A customer may be required to affirmatively “opt-in” to amerchant-funded rewards program. The customer may opt-in using anelectronic platform provided by the issuer or the merchant.

In response to merchant funding of the reward, the issuer may rebateinterchange or other fees for transactions involving customers and/orpayment instruments that have opted-in or are otherwise associated witha merchant-funded reward program. The issuer may provide a rebate to themerchant as a way of passing on savings results from merchant funding ofrewards. In some embodiments, lowering interchange fees and refundinginterchange fees may be synonymous.

Such merchant-funded rewards may increase a volume of payment instrumenttransactions by enabling and allowing merchants to control a substanceof the reward, control marketing associated with promoting the rewardand reduce a merchant discount associated with transactions.

However, such a rewards model, while novel and innovative, may beassociated with a disruption of traditional electronic payment systemarchitecture.

For example, under the new merchant-funded rewards paradigm,functionality may be provided for a customer to choose between standardcard reward (e.g., issuer funded rewards) and a merchant-funded rewardavailable from a participating merchant. Functionality would also needto be provided to allow coordination between the issuer and merchant fordetermining eligibility for rewards and tracking when a reward has beenpaid out to a customer. This functionality may work with or withoutparticipation of the merchant's acquirer. This functionality may workwith or without participation of the merchant's acquirer.

Such functionality may include a block-chain/general ledger mechanism toverify that the rewards have been paid out to the customer. The rewardsearned may be written to the general ledger by the merchant. Themerchant may also write when the rewards were expended. The issuer andthe customer may have access to the general ledger. In this way, when acustomer opts-out of issuer funded rewards and opts-in to themerchant-funded rewards, the data relating to the opt-in and the opt-outand the rewards received are available to be examined by the merchant,the customer and the issuer.

Such functionality may also allow a customer (using a paymentinstrument) to receive regular product rewards if a merchant-fundedreward is not selected or receive regular product rewards if thecustomer makes a purchase from a merchant that does not participate inthe merchant-funded rewards program.

The merchant-funded rewards paradigm may yield reduced cost ofacceptance rates for the merchant on purchases associated with activatedcards (e.g., customers that have opted-in to a specific reward programoffered by the merchant). The paradigm may convert savings on costs ofacceptance into directed marketing benefits that may increase salesvolume of the merchant. Furthermore, reduced costs of acceptance may berebated through rebates provided by acquirer to merchant.

Issuers may also derive benefit from partnering with the merchant'spromotion of the reward. For example, merchant efforts to promote therewards also promote the brand, loyalty and purchasing behaviorassociated with the issuer's purchasing instrument. Such a relationshipmay provide an economic model that promotes mutually beneficial growthand value.

The customer may also benefit from a merchant-funded reward paradigm.For example, the customer may obtain a reward of greater value (actualor perceived) when the customer selects or “opts-in” to themerchant-funded reward. The customer may also be able to select rewardsthat better fit their priorities or needs.

By partnering with an issuer, the merchant may link its rewards programto a payment instrument that the customer may use at a variety ofmerchant locations. The customer benefits from a payment instrument thatmay be used ubiquitously at different merchant locations in differentgeographic locations.

The rewards program may also deepen customer loyalty to the merchantand/or issuer. For example, rewards offered by the merchant may be tiedto other products or services offered by the merchant. The rewards mayinclude offering the customer faster service or “bonus” products whenmaking what otherwise would have been a routine purchase. Such rewardsoffered by the merchant may provide an incentive for customers to shopat a participating merchant location to earn and obtain the rewards.

The merchant may benefit by having the merchant's brand promoted as areward option regardless of the customer's final rewards selection. Themerchant may control marketing messages and behavior requirementsdelivered to customers. Furthermore, the issuer may promote themerchant's reward using one or more of the issuer's platforms forcommunication with customers. Additionally, the merchant may benefit byconverting savings in card acceptance fees to marketing efforts that mayincrease sales.

From an issuer's perspective, the custom rewards paradigm provides a newand innovative product that enriches the issuer's value propositionassociated with its purchasing instrument products. The issuer may alsobenefit by acquiring new customers as a result of the merchantsmarketing efforts.

System architecture may include mechanisms whereby merchants can submitrewards options and customers can opt-in to be eligible to earn therewards alternatives. System architecture may also provide one or moresub-systems that enable deployment of varying fee structure forprocessing such transactions. The sub-systems may utilize unconventionalcommunication protocols and/or hardware to meet or exceed timingrequirements and industry standards associated with processingelectronic payments. For example, industry standards may demand that notmore than 2-3 seconds elapse from a time a customer swipes a paymentinstrument at a POS terminal until an authorization response is receivedfrom the issuer.

Because merchant-funded rewards may only be available at merchantlocations, it may be desirable to determine customer eligibility forsuch rewards in real time at a POS. It also may desirable to determinecustomer eligibility for such rewards before the customer approaches aPOS. Unconventional communication protocols and/or hardware may, inreal-time, determine custom reward eligibility and merchant cost for atransaction.

In some embodiments, the merchant may be credited for transactionprocessing fees in a batch settlement at predetermined time intervals.

Notifications of rewards availability may be pushed to customer viamobile device apps. Such apps may be provided by the issuer, merchant orany suitable entity. Rewards availability may be determined based on anysuitable factor. Illustrative factors include geolocation, spendanalysis, market data and/or social media data.

Embodiments may include a rewards market place. Such a market place mayinclude a real-time market where merchants may submit rewards andallowing customers to select rewards that meet their needs. In someembodiments, merchants may be able to view competitor's rewardssubmissions. Such a market place may provide a platform for real-timecompetition for customers.

Embodiments may include rewards routing protocols. Such protocols mayinclude mechanisms by which a merchant is notified of a customer'srewards selection. Such a selection may trigger the customer's paymentinstrument enrollment in an alternative or bypass transaction processingnetwork. The bypass transaction processing network may automaticallytrack customer reward activity and apply appropriate fee schedules. Feeadjustments may include reductions/rebates in one or more fees collectedby the acquirer.

Customer may select reward options such as whether to receive rewards inreal-time or accrue rewards eligibility over time. Different rewards maybe made available depending on whether the customer selects to accruerewards or receive them in real-time.

Merchant-funded rewards and corresponding merchant benefits (e.g.,transaction cost adjustments) may be tracked at the merchant POSterminal. For example, when a customer who has opted-in to amerchant-funded reward program checks out, fees typically charged to themerchant at the time of the transaction may be reduced or rebated. Insome embodiments, the merchant may be responsible for providing systemsand architecture for tracking rewards and custom rewards activity. Insome embodiments, the issuer may provide systems and architecture fortracking rewards and custom rewards activity. Furthermore, such issuersystems may also track merchant credits for transactions. Credits may beearned by the merchant when a customer uses a payment instrumentassociated with a merchant-funded reward program. Systems andarchitecture may include transaction processing network integration toprocess and track reduced fees.

Embodiments may include integrating merchant credits and/or customrewards into digital forms of payment other than traditional creditcards. For example, systems and architecture may integrate with a cryptocurrency marketplace.

Customers may use any preexisting payment instrument deemed eligible bythe issuer for a rewards program. The customer may opt-in to amerchant-funded rewards program. In some embodiments, themerchant-funded rewards program may be an exclusive rewards program. Forexample, an opt-in to the merchant-funded reward program may trigger anopt-out of other reward programs. Customers may opt-out ofmerchant-funded rewards programs at any time. Customers may opt back into traditional rewards at any time.

To access a merchant-funded rewards program, a customer may use apayment instrument in possession of the customer before themerchant-funded rewards program is rolled out. An issuer may determineeligibility for merchant-funded reward program. The issuer may providenotification of customer eligibility to a merchant in authorizationresponse provided to the merchant.

Apparatus for a real-time, dynamic offer platform is provided. Theplatform may include a plurality of consumer devices. The platform mayinclude a plurality of merchant devices. The platform may include avirtual display. The virtual display may be displayable on the pluralityof consumer devices and/or on the plurality of merchant devices.

One of the merchant devices may transmit a selectable reward option tothe platform. The transmission may be processed in real-time. Thetransmission may be processed using a batch mode processing. The virtualdisplay may be configured to display the transmitted reward option.

The virtual display, displaying the transmitted reward option, may bedisplayable on the plurality of consumer devices and/or on the pluralityof merchant devices. One of the consumer devices may receive a selectionof the transmitted reward option. Upon receiving the selection, theconsumer device may store the selected reward option.

At a point-of-sale, when the consumer device is used to finalize apurchase associated with the selected reward option, the consumer devicemay be configured to communicate with the point-of-sale. Thecommunication may include termination of a custom communicationexchange. A custom communication exchange may include communicationbetween a consumer device, a merchant, an acquirer and an issuer. Theconsumer device communicates with a merchant. The merchant thencommunicates with an acquirer, which in turn communicates with anissuer. Intermediaries may facilitate the communication between themerchant and the issuer. Upon receipt of approval by the issuer, theissuer communicates the approval to the acquirer, and the acquirercommunicates the approval back to the merchant. The communication mayinclude generation of an updated custom communication exchange. Thecommunication may include information about other transaction economicsas well as rewards information, transaction information, accruedbenefits overall (total points displayed on the receipt), etc.

In some embodiments, the updated custom communication exchange may betransmitted from the point of sale directly to an issuer. It should beappreciated that, in these embodiments, an acquirer and/or network isremoved from the communication exchange and/or the acquirer is replacedwith a combined acquirer/issuer. In other embodiments, the updatedcustom communication exchange may be transmitted from the point of saleto an issuer, via an acquirer.

The updated custom communication exchange may include a revisedinterchange rate passed on to the merchant by the acquirer. The revisedinterchange rate may be passed on, by the acquirer, to a merchantassociated with the point-of-sale device. The revised interchange ratemay be less than an interchange rate included in the initial customcommunication exchange. The updated custom communication exchange mayinclude other updated fees that the merchant may pay associated with theprocessing of a transaction.

The updated custom communication exchange may include a purchase priceassociated with the purchase. The purchase price may be less than apurchase price included in the custom communication exchange. In someembodiments, the selected reward option may be a non-monetary reward.The non-monetary reward may include a free item, a free service and/or afree upgrade. The non-monetary reward may grant the customer access toexclusive products and/or services not available to the general public.The non-monetary reward may include enabling one or more purchases at apreferred shopping time. The non-monetary reward may include any othersuitable non-monetary reward. In these embodiments, the purchase pricemay equal a purchase price included in the custom communicationexchange. Because the purchase prices may be the same, in order tocommunicate the selected reward option to the issuer, a selected rewardoption complete tag may be associated with the updated customcommunication exchange.

The updated custom communication exchange may include a reward tag. Thereward tag may be associated with the purchase of the item. The rewardtag may be reset to zero from a non-zero value included in the customcommunication exchange. The zero value may trigger removal of thepurchase from a points eligibility list.

The updated custom communication exchange and/or the customcommunication exchange may include interchange information, othertransaction economic information, reward information, transactioninformation, accrued benefits total and any other suitable information.In some embodiments, the accrued benefits total or total points accruedfor a specific card product may be displayed on a receipt on thecustomer.

The platform may be configured so that each merchant device may updateoffers, transmit additional offers and/or remove offers in real-time.

In some embodiments, the plurality of consumer devices may include afirst plurality of consumer devices. The plurality of consumer devicesmay include a second plurality of consumer devices. A consumer deviceincluded in the first plurality of consumer devices may be configured toshare at least one selectable reward option with a subset of theplurality of consumer devices. The subset may be a predefined subset.The subset may be distinct for each consumer device. The subset may bedefined by the consumer device.

The consumer devices included in the subset may be configured to receivelike and/or dislike comments to shared reward offers. The like and/ordislike comments may be displayed on the virtual display of the consumerdevices included in the subset. The consumer devices included in thesubset may be configured to receive a selection of the shared offers.

A method for rerouting a communication from a first network to a secondnetwork is provided. The first network may include a merchant. Themerchant may be in communication with an acquirer. The acquirer may bein communication with an issuer. The second network may include at leastone merchant. The merchant may be in direct communication with theissuer independent of communication with an acquirer. The second networkmay include one or more intermediaries to facilitate the communication.

The method may include receiving a selectable reward option at an offerplatform. The reward option may be received from a merchant device. Themerchant device may be included in a plurality of merchant devices.

The method may include displaying the reward option on a virtualdisplay. The virtual display may be displayable on the plurality ofmerchant devices and on the plurality of consumer devices. The methodmay include receiving a selection of a selectable reward option from aconsumer device. The method may include storing the selected rewardoption on the consumer device. The method may include storing theselected reward option on the offer platform.

The method may include receiving a request for a purchase communicationat a point-of-sale associated with the merchant. The purchasecommunication may be associated with the selected reward option. Uponreceipt of the request, a rerouting of the purchase communication viathe second network may be triggered. The method may include transmittingthe purchase communication directly from the merchant to the issuer viathe second network. It should be appreciated that the fees for use ofthe second network may be less than fees charged for use of the firstnetwork. The second network may be associated reduced or rebated networkfees and/or reduced/rebated acquiring fees. Such fee reductions orrebates may be applied to compensate the merchant for providingcustomers with custom reward programs. In addition to reductions orrebates of specific transaction fees, other economic incentives may beapplied.

In some embodiments, each selectable reward option may include a rewardmetadata file. The reward metadata file may include information such asgeographic location information, target age information, market data,target income bracket and/or any other suitable information. In theseembodiments, each consumer device may include a dynamic consumermetadata file. The dynamic consumer metadata file may includeinformation such as current geographic location information, ageinformation, spend trends and analysis, income information, social mediadata and/or any other suitable information. The dynamic consumermetadata file may be updated when a consumer enters a predeterminedlocation. The location may be a shopping center. A consumer associatedwith the consumer device may enable and/or disable the updating of thedynamic consumer metadata file.

A processor may determine which reward options are relevant for whichconsumer devices based on a correlation value between the dynamicconsumer metadata file and the reward metadata file being greater than apredetermined correlation value. The display of each consumer device maybe configured to display the reward options that are determined to berelevant.

A system for offering rewards is provided. A reward may be provided by amerchant. The merchant may offer rewards based on location. A merchantmay offer rewards that are specific to customer behavior. Such customerbehavior may include geolocation, spend analysis, market data and socialmedia data. The merchant may also create rewards that promote specificcustomer behavior. Such specific customer behavior may include onlinepre-ordering of services and/or products. Such specific customerbehavior may include purchasing specific items.

Merchants may use the merchant-funded reward to steer or direct adesired customer behavior. For example, a merchant may provide a rewardonly if a customer uses a self-service check-out kiosk. A merchant mayprovide a reward only if a customer orders ahead with his/her mobiledevice. A merchant may provide a reward only if a customer shops withina desired department within a shop. A merchant may provide a reward onlyif a customer shops at a specific merchant location. A merchant maymodify rewards in order to promote specific customer behavior atdifferent locations, different seasons, various times of day or anyother reason.

A new card product may offer merchant-funded rewards and reduced costsfor the merchant. This may be the exclusive reward associated with thiscard. This card may be promoted by merchants because the card isassociated with a lower net merchant discount. In some embodiments,custom rewards can be used to enhance an already existing card productoffered by an issuer. For example, card products offered by the merchantmay be eligible for opting into a custom rewards program or retaining anassociation with other rewards programs. In such embodiments, the otherrewards programs may be the default rewards programs associated with thecard product. In other embodiments, custom rewards may be the defaultrewards program and customer may opt-out of custom rewards and opt intoanother rewards program. In other embodiments, custom rewards may be theexclusive rewards program for a card product.

A custom rewards network may be used to handle custom reward products,such as the new card product. Using the custom rewards network, networkand/or acquirer fees may be lowered by avoiding traditional networkfees. Customers may opt-in to merchant-funded rewards. Upon customeropt-in, a shift may be triggered to the custom rewards network. Rewardsmay be offered at the point-of-sale. If a customer accepts, thetransaction may be rerouted to the custom rewards network.

A social media platform may be created around the custom rewards networkand/or card product. Cardholders may be able to share offers, receiveoffers and like and/or dislike offers on the social medial platform. Itshould be appreciated that the social media platform may extend tonon-cardholders as well. Cardholders may be able to share offers withnon-cardholders. This may encourage the non-card holders to apply forthe new card.

A real-time market may be instantiated. The real-time market may enablemerchants to offer customers a variety of reward choices. Customers mayselect rewards that meet their respective needs. Merchants may be ableto view competitor's reward bids. The marketplace may create real-timecompetition for cardholder business.

Apparatus and methods described herein are illustrative. Apparatus andmethods in accordance with this disclosure will now be described inconnection with the figures, which form a part hereof. The figures showillustrative features of apparatus and method steps in accordance withthe principles of this disclosure. It is to be understood that otherembodiments may be utilized and that structural, functional andprocedural modifications may be made without departing from the scopeand spirit of the present disclosure.

The steps of methods may be performed in an order other than the ordershown and/or described herein. Embodiments may omit steps shown and/ordescribed in connection with illustrative methods. Embodiments mayinclude steps that are neither shown nor described in connection withillustrative methods.

Illustrative method steps may be combined. For example, an illustrativemethod may include steps shown in connection with another illustrativemethod.

Apparatus may omit features shown and/or described in connection withillustrative apparatus. Embodiments may include features that areneither shown nor described in connection with the illustrativeapparatus. Features of illustrative apparatus may be combined. Forexample, an illustrative embodiment may include features shown inconnection with another illustrative embodiment.

FIG. 1A shows typical credit transaction flow 100. Flow 100 involvestransaction participants such as the merchant, the customer, andtransaction service providers that are identified below.

Settling the transaction may include the transaction network receiving aplurality of transactions from the acquirer. Each of the plurality oftransactions may comprise an amount authorized by the issuer. Thetransaction network may debit an account of the issuer for the amountauthorized and credit an account of the acquirer the amount authorized.

Settlement may include a transfer of funds between two or moretransaction participants. The transfer may be a “book transfer,” aninter-bank transfer or any suitable transfer between the transactionparticipants. A settlement network may transfer the funds between thetransaction participants. Illustrative settlement networks may includethe Federal Reserve Wire Network (“Fedwire”) and other suitablesettlement networks that are well known to those of ordinary skill inthe art. The settlement network may be any suitable network linking oneor more accounts of the transaction participants.

One transaction participant may collect a fee from another transactionparticipant. The fee may include a point-of-sale terminal rental fee,network fee and any other suitable fees. The fee may be a fixed fee fora transaction. The fee may be a percentage of a transaction. The fee maybe a combination of a fixed fee and a percentage of the transaction.

The acquirer may deduct fees from the amount that the acquirer pays themerchant in exchange for the product. Such a deduction may be called a“merchant discount.” The merchant discount may include the acquirer'sfee, interchange fee, and other expenses.

At step 1, the merchant provides information, relating to a proposedtransaction between the merchant and a customer, to a transactionauthorization and clearance provider. The transaction authorization andclearance provider may be a transaction processing network. Thetransaction authorization and clearance provider may provide transactionauthorization and clearance information to the merchant. The transactionauthorization and clearance information may include authorization forthe transaction to proceed.

At step 2, the merchant provides $100 in product to the customer. Thecustomer pays with a credit card. At step 3, the issuer transmits to thecustomer a statement showing the purchase price ($100.00) due. Theissuer collects the purchase price amount, along with interest and feesif appropriate, from the customer. At step 4, the issuer routes thepurchase price amount ($100.00) through the transaction processingnetwork to the acquirer. At step 5, the acquirer partially reimbursesthe merchant for the purchase price amount. In the example shown in FIG.1 a, the partial reimbursement is $98.00. The difference between thereimbursement amount ($98.00) and the purchase price amount ($100.00) isa two dollar ($2.00) transaction cost.

At step 6, the acquirer transfers a $1.50 interchange amount to thetransaction processing network and pays a $0.07 fee to the transactionprocessing network. At step 7, the issuer transfers $0.05 to thetransaction processing network.

TABLE 1 Net positions, by participant, based on transaction flow 100(shown in FIG. 1a). Participant Net ($) Issuer −0.05 Acquirer 0.43Transaction processing 1.62 network Merchant −2.00 Customer 0

In transaction flow 100 (shown in FIG. 1a ), the transaction fee isbased on an exemplary merchant discount rate of 2%. The $1.50interchange is based on an exemplary interchange rate of 1.5%. Theinterchange rate is typically set by the transaction processing network.The sum of the transaction processing network fees ($0.07 and $0.05) isbased on a total exemplary transaction processing network fee rate of0.12%.

Transaction processing networks and transaction processing networkservices are offered under trademarks known to those of ordinary skillin the art. Transaction processing networks may set interchange rates.Issuers may refund or reimburse all and/or a portion of a merchantdiscount and/or interchange amount. Interchange rates often depend foreach transaction processing network on merchant type and size,transaction processing method, transaction volume and other factors.

Currently, issuers may offer reward programs associated with creditand/or debit payment instruments. Such payment instruments may includecredit cards, debit cards, instruments or devices that include a contactchip, such as an IS014443-compliant contactless chip, or otherelectronic purchasing devices such as smart phones or tablets(collectively hereinafter, payment instruments). Payment instruments mayinclude payment instrument information stored on a mobile device (e.g.,smart phone) or accessible via a mobile device. Illustrative paymentinstrument information is shown below in Table 2.

TABLE 2 Illustrative Payment Instrument Information Issuer Transactionnetwork Customer name Expiration date Card security code (“CSC”) Cardverification data (“CVD”) Card verification value (“CVV,” “CVV2,” “iCVV”or “Dynamic CVV”) Card verification value code (“CVVC”) Cardverification code (“CVC” or “CVC2”) Verification code (“V-code”) Cardcode verification (“CCV”) Signature panel code (“SPC”) Customeridentification number (“CID”) Card account number Brand Rewards ProgramID Affinity

FIG. 1B shows a device presenting an illustrative offer platform. Theoffer platform may include one or more than one user interface, such asgraphic user interface (“GUI”) 101 and/or GUI 103.

GUI 101 and/or GUI 103 may include one or more platform features. Theplatform features may include one or more “widgets”, windows, virtualtabs, virtual buttons and/or virtual toggle switches.

GUI 101 may include a dashboard view. GUI 101 may include a welcomescreen. GUI 101 may include features 109, features 111, and/or features113.

Features 109 may enable logging into or out of one or more than oneplatform account. Features 109 may enable accessing of platforminformation, such as account alerts and/or notifications. Features 109may enable accessing support and/or help information.

Features 111 may include the welcome screen. Features 111 may includeone or more indications identifying the account(s). Features 111 mayinclude photo(s) of one or more than one user associated with theaccount(s). Features 111 may include a name(s) and/or username(s) of theuser(s).

Features 113 may present general account information associated with theaccount(s). Features 113 may facilitate accessing the account(s).Features 113 may facilitate transaction(s) with one or more thirdparties. Features 113 may facilitate accessing of GUI 103.

GUI 103 may include an account screen. GUI 103 may include detailedinformation associated with one or more of the account(s). GUI 103 mayinclude features 115 and/or features 117. Features 115 may enablelogging into or out of the account(s). Features 115 may enable accessingof additional account information, such as account alerts and/ornotifications. Features 115 may enable accessing support, customerservice and/or help information.

Features 117 may include detailed account data, such as account historyand/or upcoming account events. Features 117 may facilitate making oneor more payments to the account and/or updating account information.Features 117 may facilitate access to GUI 101.

FIG. 1C shows the device presenting an illustrative custom offerplatform. The custom offer platform may include one or more than oneuser interface, such as GUI 105 and/or GUI 107. GUI 105 and/or GUI 107may include one or more of the platform features described in connectionwith FIG. 1B.

GUI 105 may include one or more than one of the features described inconnection with GUIs 101 and 103. GUI 105 may include proactive “shadowbox” 119. Shadow box 119 may include one or more than one pop up window.Shadow box 119 may present one or more than one custom merchant rewardoffer associated with one or more than one payment instrument. Shadowbox 119 may include general and/or detailed information regarding theoffer(s). Shadow box 119 may include one or more than one of thefeatures configured to facilitate accepting and/or registering for theoffer(s).

Shadow box 119 may be configured to be presented in response to atriggering event. The event may include detected proximity of the userto a geographic location. The location may be associated with the offer,such as a location of a merchant presenting the offer. The event mayinclude a detected purchase by the user associated with the offer, suchas a purchase of a similar or related product and/or service. Shadow box119 may be presented over GUI 103. The event may include activation ofone or more of the features of GUI 101, GUI 103 and/or GUI 107.

Upon presentation of GUI 105, shadow box 119 may occlude one or morethan one portion of GUI 103. Upon presentation of GUI 105, one or morethan one remaining portion of GUI 103 may be shaded and/or inaccessibleuntil removal of shadow box 119.

GUI 107 may include a customer rewards screen. GUI 107 may include someor all of the features described in connection with GUIs 101, 103 and105. GUI 107 may present general information regarding one or morereward offers. GUI 107 may include one or more features for acceptingand/or rejecting the offers, such as features 121, 123 and 125. Features121, 123 and 125 may include a “Learn More” button. Selecting the “LearnMore” button may link to and/or take the user to a merchant website,application or other applicable medium where the merchant may promotethe merchant brand, message, rewards value and any other suitableinformation.

FIG. 2 shows an illustrative chart 200 showing values obtained by acustomer 202, a merchant 204 and a bank issuer 206 when integrating themerchant-funded rewards program into a pre-existing payment instrument.Customer 202, merchant 204 and bank issuer 206 may all benefit fromhaving the capability of switching communication exchange routes withina pre-existing payment instrument.

When using the merchant-funded rewards program, customer 202 may receiverewards that are greater in value than the standard rewards. Customer202 may select the rewards that best fit their life priorities. Customer202 may use the payment instrument at all merchants that accept thepayment instrument.

Merchant 204 may benefit from participating in the merchant-fundedrewards program. Providing merchant-based rewards may incentivize thecustomer to shop at participating merchants. Offering rewards anddisplaying the rewards in real-time to the customer may market themerchants brand regardless of whether the customer opts-in to themerchant-funded rewards program. In a merchant-funded rewards programarchitecture, merchant 204 may control its marketing message andbehavior requirements. Merchant 204 may convert the card acceptancecosts to marketing in order to drive sales.

Bank issuer 206 may derive benefit from vetting transaction initiated ata POS terminal on behalf of merchant 204. Bank issuer 206 may review acredit-worthiness of customer 202 before authorizing a transaction. Bankissuer 206 may also reduce fees typically imposed on merchant 204 forreviewing a credit-worthiness of customer 202. Merchant 204 may promotecustom rewards associated with a payment instrument issued by bankissuer 206. Such promotion may drive increased usage of paymentinstruments provided by bank issuer 206. Bank issuer 206 may gain marketexposure and revenue from increased use of its payment instruments.

Payment instrument products offered by bank issuer 206 may facilitatethe merchant-customer interaction (e.g., purchases goods/servicesoffered by merchant 204). Bank issuer 206 may interact directly withcustomer 202 on features and attributes of a payment instrument. Bankissuer 206 may advocate for customer 202 and drive new customeracquisition.

FIG. 3 shows an illustrative process flow 300. Process flow 300 showsvalues paid and received by transaction participants. An electronicpayment processing system may provide hardware and software fortransmitting and routing information between each transactionparticipant.

Column 302 shows illustrative values paid and received by a customer. Acustomer may seek to maximize a value of goods/services purchased frommerchant 204. Column 302 shows that providing custom rewards mayincrease the value received by a customer.

Column 304 shows illustrative values paid and received by a merchant. Amerchant may wish to increase sales volume and build customer loyalty.Column 304 shows that providing custom rewards may reduce expenses of amerchant.

Column 306 shows illustrative values paid/received by anacquirer/network. An acquirer/network may wish to maintain security,stability, and ubiquity of credit transactions. Column 302 shows thatproviding custom rewards may not affect revenue of an acquirer/network.

Column 308 shows illustrative values paid and received by an issuer. Anissuer may wish to increase sales and build brand loyalty. Column 308shows that providing custom rewards may increase the value received byan issuer.

In process flow 300, row 310 represents a distribution of value amongtransaction participants using a conventional rewards model. Aconventional rewards model may be funded solely by an issuer. Theeconomics of the conventional rewards model may reinforce the issuerbank brand, issuer customer loyalty, and marketing to an issuer bankcustomer base.

Row 312 represents a distribution of value among transactionparticipants associated with a credit transaction using a merchantfunded rewards model. Economics of a merchant funded rewards model mayalso reinforce a merchant brand, merchant customer loyalty, andmessaging to a merchant customer base.

Row 310 shows that a customer (column 302) may present a paymentinstrument at a POS terminal to initiate a purchase. The purchase pricemay be $100. The cost of acceptance, (or transaction cost or merchantdiscount), for the purchase may be imposed on the merchant. Column 304shows an exemplary cost of acceptance imposed on a merchant.

Row 310 shows that in a conventional rewards model the merchant may payvalue corresponding to 230 basis points (“bps”). Each bps may correspondto 0.01% of a purchase price. In row 310, the merchant may pay $2.30 asa transaction cost.

Column 306 shows that 30 bps of the transaction cost shown in row 310(or $0.30) is received by the acquirer/network. Column 308 shows that150 bps (or $1.50) is paid by the issuer as a bank reward 314. Reward314 is ultimately received by the customer, as shown in column 302.

Row 312 shows an illustrative distribution of value among transactionparticipant using a merchant funded reward model. Row 312 shows acustomer (column 302) may present a payment instrument at a POS terminalto initiate a purchase. The purchase price may be $100. The cost ofacceptance of the credit transaction may be imposed on the merchant. Thecost of acceptance is shown in column 304. Column 304 shows thatmerchant may pay 80 bps ($0.80) as a total transaction cost using themerchant funded reward model. This merchant transaction cost is 150 bpsless than the merchant transaction cost imposed in row 310 using theconventional rewards model.

In row 312, 30 bps of the transaction cost ($0.30) is received by theacquirer/network. Process flow 300 shows that value received by theacquirer/network may remain the same under both rewards models. In someembodiments, under a merchant funded reward model, the value received bythe acquirer/network may change. For example, the 30 bps amount may belowered as a result of participating in a custom reward program.

Column 304 shows that in row 310, a 150 bps transaction cost is paid bythe issuer. Under the merchant funded rewards model, an issuer may notpay any value in rewards. Column 308 shows that a net value paid by theissuer in row 312 is 0 bps.

Column 304 shows that in row 312, the merchant transfers reward 316directly to the customer (column 302). Reward 316 may be structured sothat a cost to the merchant is less than a value of the reward receivedto the customer. In the exemplary transaction of row 312, the merchantmay offer a reward that costs the merchant less than $1.50, yet thereward may have a value greater than $1.50 to the customer. A totaltransaction cost to the merchant may be less than the $2.30 transactioncost shown in row 310 under the conventional rewards model. Furthermore,reward 316 received by the customer (column 302) in row 312 may have avalue greater than the $1.50 (item 314) in value received by thecustomer in row 310.

FIG. 4 shows an illustrative outline 400. Outline 400 shows mechanisms(e.g., software and hardware) that may be used to implement a merchantfunded rewards offer platform. 402 provides a high-level statement offunctionality of a merchant funded rewards offer platform. A merchantfunded rewards platform may include mechanisms for merchants to opt-into various rewards alternatives that are associated with varying levelsof reduced/rebated acquirer and/or network fees. A merchant fundedrewards platform may include mechanisms that provide real-time data andpricing. Merchants may opt-in (or out) to a merchant funded rewardprogram based on real-time data and pricing associated with a particularprogram. Merchant selections may be implemented in real-time. They maybe implemented at a POS terminal. They may be implemented online. Theymay be accrued and/or batch settled at time intervals.

404 represents mechanisms for a customer to select optimal rewardsoptions are described. A customer may select reward options via email,mobile and/or online banking.

406 represents mechanisms that provide notifications of custom rewardavailability. The notification may be triggered by geolocation, spendanalysis, market data and or social media data.

408 represents mechanisms for implementing a rewards marketplace. Therewards marketplace may be a real-time market by which merchants may bidon a rewards level. The rewards level may enable customers to selectrewards that meet their needs and/or standards. A rewards marketplacemay enable merchants to view competitor's rewards bids. A rewardsmarketplace may enable real-time competition for bank issuer cardholder(or owner of any other payment instrument) business by offering variouscustom rewards for payment instrument.

410 represents mechanisms for routing rewards. When a merchant isnotified of a cardholder's (or owner of any other payment instrument)rewards selection, the payment instrument may be enrolled in analternative network. The alternative network may be configured to applyan economic model associated with the reward selection. The economicmodel may include monetary rewards. Illustrative monetary rewards mayinclude cash-back rewards. The cash-back may be provided instantly at aPOS. Cash-back may be applied as an instant statement credit or accruedand redeemed at specified and/or selected intervals.

Rewards may be non-monetary in nature. For example, rewards may beupgrades, free items, enhanced service and/or preferred service times.Mechanisms may allow customers to select which options they prefer.Options may include real-time or accrued rewards. The alternativenetwork may apply a merchant's economic model to the reward selection.The economic model may include reduced (or rebated) acquirer and/ornetwork fees. The reduction or rebate may be based on the reward offeredby the merchant to a customer. The merchant selection of a reward tooffer the customer may be based on the magnitude of the reduction. Aneconomic model may be applied in real-time or may be batch settled.

FIG. 5 shows illustrative system 500 for processing and communicatingtransaction information. System 500 may be used to track merchant fundedrewards and corresponding merchant benefits. System 500 may be used toidentify customers that are eligible for a custom reward. System 500 maybe used to determine an appropriate custom reward to offer a customer ata POS terminal.

System 500 may include merchant component 502, network component 504 andissuer component 506. In general, a system such as 500 may include manymerchant components such as 502, many issuer components such as 506 andmany network components such as 504.

A customer may purchase goods by transferring customer information froma payment instrument, such as a credit card, to point-of-sale (“POS”)terminal 508. POS terminal 508 may read or otherwise capture customerinformation from the card. The payment instrument may store data in amagnetic strip, a bar code, a silicon chip or any other suitable datastorage device or format. The customer information may include issuerinformation, account information and any other suitable information.

POS terminal 508 may transmit transaction data to POS controller 510.POS controller 510 may ingest the transaction data. The transaction datamay include some or all of the customer information and any othersuitable information, such as the transaction amount, informationregarding the purchased goods and one or more values associated with thetransaction.

POS controller 510 may act as a server for providing user prompts anddisplay layout information to one or more POS terminals such as POSterminal 508. POS controller 510 may receive and ingest transaction datafrom one or more of the POS terminals.

POS controller 510 may transmit transaction data to host data capturesystem 512. Host data capture system 512 may store transaction datareceived from POS controller 510. Host data capture system 512 may storeaccounting data, inventory data and other suitable data that may beincluded in the transaction information. A custom rewards offered at POSterminal 508 may be determined based on transaction data stored in hostdata capture system 512. “Ingesting” transaction data may includedetermining a custom reward for the ingested transaction data.

The transaction data may include information about the merchant, themerchant's business, the merchant's network membership, the merchant'sbusiness behavior and any other suitable information. Transactioninformation may include some or all of the information that is necessaryto identify custom reward eligibility. Custom rewards eligibility, ordetermination of a specific custom reward to offer a customer, maydepend on factors, such as customer spend rate, purchasing behavior,time/date, geolocation, interchange rate, network rates, merchant type,merchant size, transaction processing method, and any other suitablefactors. Transaction data may include one or more of the foregoingfactors and any other suitable factors.

The transaction information may be stored in any suitable element ofmerchant component 502, network component 504 and issuer component 506.For example, transaction cost information may be stored in processor514. Processor 514 may include algorithms, including machine learningalgorithms, which may be used to identify a custom reward for a customertransaction taking place at POS terminal 508.

For example, the merchant may offer different rewards to differentcustomers. Offered rewards may depend of what the customer typicallypurchases (at the merchant or other merchants). Rewards may depend of apayment instrument used by the customer to complete a purchase. After acustom reward is identified, processor 514 may transmit the reward, viamerchant components 502, to POS controller 510.

Host data capture system 512 may be configured to determine eligibilityfor a custom reward or merchant funded rewards program. Host datacapture system 512 may track earning and spending of rewards associatedwith a payment instrument. POS controller 510 may be configured todetermine eligibility for a rewards program and/or the earning orspending of custom rewards.

POS terminal 508 may have one or more interactive features that acustomer may use. The features may provide the customer with informationthat may help the customer decide whether to execute a transaction. Thecustomer may use the features to obtain more information about themerchant, the transaction, a custom reward, a custom rewards program,costs associated with different payment instruments, or any othersuitable information.

Host data capture system 512 may route the transaction record toprocessor 514. The illustrative systems shown in FIGS. 5 and 6 mayinclude one or more other processors that perform tasks that areappropriate for the components thereof.

Processor 514 may route the transaction record, via network 516, todatabase 516. Network 516 may be a default transaction processingnetwork. Network 516 may be a bypass, or alternative, transactionprocessing network. The routing of a transaction record may be governedby the transaction data or rewards eligibility. For example, eligibilityfor a merchant funded rewards program may be associated with a bankissuer number (“BIN”) that is encoded in the customer's paymentinstrument. Authorization engine 520 may render a transactionauthorization decision based on the transaction data and/or transactionrecord.

Authorization engine 520 may transmit an authorization response back toPOS terminal 508 through network 516, processor 514, host data capturesystem 512 and POS controller 510. The authorization response mayinclude the authorization decision (e.g., “GRANTED” or “DENIED”). Theauthorization decision may include some or all of the transaction dataor custom rewards information (e.g., specific rewards, eligibility orrewards accrued). The transaction data may be used by processor 514 toroute the authorization decision back to the merchant and the POSterminal where the customer is present.

FIG. 6 shows illustrative system 600 for processing and communicatingpayment instrument and transaction data. System 600 may include merchantcomponent 602, network component 604 and issuer component 606. Ingeneral, a system such as 600 may include many merchant components suchas 602 and many issuer components such as 606. System 600 may have oneor more of the features that are described herein in connection withsystem 700.

In system 600, processor 614 may be present in merchant component 602.Corresponding processor 614 is present in network component 704 (shownin FIG. 7). In some embodiments, processor 614 may be present in issuercomponent 606. For example, for embodiments that utilize the processshown in FIG. 6, processor 614 may be present in merchant component 602or issuer component 606. Removing processor 614 from network component604 may provide an unconventional communication pathway for implementinga bypass, or alternative, transaction processing network. Processes inaccordance with the principles of the invention may include one or morefeatures of the processes shown in FIGS. 1B-4.

Thus, systems and methods for a custom rewards architecture with acrypto-currency rewards network have been provided. Persons skilled inthe art will appreciate that the present invention can be practiced byother than the described embodiments, which are presented for purposesof illustration rather than of limitation.

What is claimed is:
 1. A network for maintaining and disbursing rewardson behalf of a plurality of anonymous crypto-currency holders, thenetwork in communication with a crypto-currency platform, the pluralityof anonymous crypto-currency holders in communication with thecrypto-currency platform, the network comprising: a receiver forreceiving purchase information from the crypto-currency platform, saidpurchase information related to at least one purchase performed, usingcrypto-currency at a point-of-sale (POS) device, by at least one of theplurality of anonymous crypto-currency holders, said purchaseinformation including a purchase price; and a transmitter fortransmitting reward information to the POS device, said transmittingreward information that comprises transmitting at least one of ananonymous bearer coupon, a reduction in the purchase price or acrypto-currency refund.
 2. The network of claim 1, wherein, at the POSdevice, the at least one of the plurality of anonymous crypto-currencyholders associated with the at least one purchase choses between theanonymous bearer coupon, the reduction in the purchase price and thecrypto-currency refund.
 3. The network of claim 2, wherein, the order inwhich the anonymous bearer coupon, the reduction in the purchase priceor the crypto-currency refund is presented to the at least one of theplurality of anonymous crypto-currency holders is based, at least inpart, on a machine-learning algorithm that determines the selection of amajority of crypto-currency holders within a specific geographical area.4. The network of claim 3, wherein the specific geographical area isdefined based on a predetermined distance surrounding the POS device. 5.The network of claim 1, wherein the crypto-currency refund is disbursed,in response to the purchase, to a merchant associated with the POSdevice, said disbursement using an acquiring network.
 6. The network ofclaim 5, wherein the acquiring network: is associated with the merchantand the crypto-currency network; instructs the network to transmit thereward information; and does not retrieve an interchange fee from themerchant in order to compensate for the transmission of the rewardinformation.
 7. A network for maintaining and disbursing rewards onbehalf of a plurality of anonymous crypto-currency holders, the networkin communication with a crypto-currency platform, the plurality ofanonymous crypto-currency holders in communication with thecrypto-currency platform, the network comprising: a receiver forreceiving purchase information from the crypto-currency platform, saidpurchase information related to at least one purchase performed, usingcrypto-currency at a point-of-sale (“POS”) device, by at least one ofthe plurality of anonymous crypto-currency holders; and a transmitterfor transmitting reward information to the POS device, and fortransmitting reward information to the crypto-currency platform, saidinformation that inures to the benefit of the at least one of theplurality of anonymous crypto-currency holders.
 8. The network of claim7, wherein: the reward information comprises at least one of: ananonymous bearer coupon; a reduction in a purchase price of thepurchase; and a crypto-currency refund; at the POS device, the at leastone of the plurality of anonymous crypto-currency holders associatedwith the at least one purchase selects, between the anonymous bearercoupon, the reduction in the purchase price or a crypto-currency refund.9. The network of claim 8, wherein, the order in which the anonymousbearer coupon, the reduction in the purchase price or thecrypto-currency refund is presented to the at least one of the pluralityof anonymous crypto-currency holders is based, at least in part, on amachine-learning algorithm that determines the selection of a majorityof crypto-currency holders within a specific geographical area.
 10. Thenetwork of claim 9, wherein the specific geographical area is definedbased on a predetermined distance surrounding the POS device.
 11. Thenetwork of claim 7, wherein the crypto-currency refund is disbursed, inresponse to the purchase, to a merchant associated with the POS device,said disbursement using an acquiring network.
 12. The network of claim11, wherein the acquiring network: is associated with the merchant andthe crypto-currency network; instructs the network to transmit thereward information; and does not retrieve an interchange fee from themerchant in order to compensate for the transmission of the rewardinformation.
 13. A network for maintaining and disbursing rewards onbehalf of a plurality of anonymous crypto-currency holders, the networkin communication with a crypto-currency platform, the plurality ofanonymous crypto-currency holders in communication with thecrypto-currency platform, the network comprising: a receiver forreceiving purchase information from the crypto-currency platform, saidpurchase information related to at least one purchase performed using acrypto-currency card, said crypto-currency card for use at apoint-of-sale (POS) device, said receiving purchase informationcomprising receiving purchase information from at least one of theplurality of anonymous crypto-currency holders, said purchaseinformation including a purchase price; and a transmitter fortransmitting reward information to the POS device, said transmittingreward information comprising transmitting at least one of an anonymousbearer coupon, a reduction in the purchase price and crypto-currencycredit that inures to the benefit of a crypto-currency accountassociated with the at least one of the plurality of anonymouscrypto-currency holders.
 14. The network of claim 13, wherein, at thePOS device, the at least one of the plurality of anonymouscrypto-currency holders associated with the at least one purchase chosesbetween the anonymous bearer coupon, the reduction in the purchase priceor a crypto-currency credit.
 15. The network of claim 14, wherein theorder in which the anonymous bearer coupon, the reduction in thepurchase price or the crypto-currency credit is presented to the atleast one of the plurality of anonymous crypto-currency holders isbased, at least in part, on a machine-learning algorithm that determinesthe selection of a majority of crypto-currency holders within a specificgeographical area.
 16. The network of claim 15, wherein the specificgeographical area is defined based on a predetermined distancesurrounding the POS device.
 17. The network of claim 13, wherein thecrypto-currency refund is disbursed, in response to the purchase, to amerchant associated with the POS device, said disbursement using anacquiring network.
 18. The network of claim 17, wherein the acquiringnetwork: is associated with the merchant and the crypto-currencynetwork; instructs the network to transmit the reward information; anddoes not retrieve an interchange fee from the merchant in order tocompensate for the transmission of the reward information.
 19. A methodof electronically processing rewards using a block-chain general ledger,the method comprising: receiving a request from a customer to opt-in toa merchant-funded rewards (“MFR”) program for a specific transaction; inresponse to receiving the request, linking a payment instrument of thecustomer to the MFR program; receiving an authorization request from themerchant to process the transaction initiated using the paymentinstrument; in response to receiving the authorization request from themerchant, detecting that the payment instrument is linked to the MFRprogram; posting the transaction to the general ledger, said generalledger being available to the customer, the merchant and an issuer ofthe payment instrument; posting a reward associated with the transactionto the general ledger; processing the transaction after the posting ofthe transaction and the reward.
 20. The method of claim 19, wherein theissuer is configured to provide issuer funded rewards to the customerfor a subset of transactions associated with the payment instrument,said subset of transactions comprising transactions that are not shownin the general ledger associated with a reward.